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AOKANG Shoe Industry Set Up A Model For Chinese Enterprises To Cope With Trade Barriers

2012/11/23 9:12:00 27

AOKANG Shoe IndustryTrade BarriersInternational Trade DisputesLitigation Of Rights Protection

 

Marathon way of safeguarding rights


From the prosecution of the European Union to the final victory, AOKANG shoe industry has gone through the marathon way of safeguarding rights for 6 years.


Back in October 2006,

European Commission

In order to protect the interests of Member States, it has decided to levy a 2 year anti-dumping duty of up to 16.5% on leather shoes imported from China and Vietnam.

Faced with the EU's unwarranted anti dumping stick, AOKANG shoes filed a lawsuit against the trade decision for the first time.


In October 2008, when the anti-dumping measures were due to expire, the European Union decided to launch a "expiry review" on the anti-dumping case of Chinese leather shoes.

In December 2009, the European Union made a decision to review the anti-dumping measures against Chinese leather shoes for another 15 months without sufficient justification.


In March 2010, after the European Union General Court rejected 5 Chinese shoe companies' lawsuit claims, AOKANG shoes decided to continue appeals to the European Court of justice.

In April 8th of the same year, the Chinese government formally appealed against WTO to protest against EU's leather shoes against China.

Anti dumping measures

An expert group request was set up to formally launch the WTO trade dispute settlement mechanism.


Under the joint efforts of all parties, the European Commission formally announced in March 16, 2011 that the anti-dumping duties imposed on leather shoes in China and Vietnam were formally abolished in March 31, 2011.

In November 15th this year, the European Court of Justice issued a verdict, finally ruled that the European Court of justice in the trial of AOKANG's defense against the EU anti-dumping case, the use of improper legal provisions, lack of impartiality, judge AOKANG shoe industry to win the lawsuit.


In charge of the case, Beijing Zhong Lun Law Firm lawyer Pu Ling Chen told reporters that the success of AOKANG shoes made the EU Committee's anti-dumping duties on Chinese leather shoes invalid.

According to the European Court's decision, the European Union will bear the litigation costs of AOKANG's appeal to the European Union General Court and the European Court of justice.

In addition, the importers and exporters who have trade relations with AOKANG may also receive some anti-dumping duties from the EU concerned in principle.


AOKANG has far-reaching implications.


"The EU's anti-dumping measures include

AOKANG shoe industry

The export business of a large number of Chinese enterprises has been affected, but it also gave enterprises a lesson on how to deal with trade protectionism.

Wang Zhentao, chairman of AOKANG footwear industry, told reporters that AOKANG's shoe industry not only won the lawsuit and dignity, but also learned from the relevant legal knowledge of international trade and accumulated experience in dealing with international trade disputes, which is of great benefit to the further internationalization of enterprises.


In addition, in the anti-dumping struggle with the European Union, AOKANG shoes industry has also accelerated the improvement of the production process, adjusted and optimized the product mix, and the quality of the products has been greatly improved.

Nowadays, the export price of AOKANG shoes has reached more than 20 US dollars, and the export price of some high quality products has reached US $50.


In fact, the victory has also brought far-reaching impact to the industry.

Xie Rongfang, executive director of Wenzhou shoe leather industry association, said that the ruling of the EU court means that the green channel for Chinese leather shoes to enter the EU market will be opened up in the future, and enterprises will not have to pay 16.5% surcharge again.

This also reminds Chinese manufacturing enterprises that if the western countries' trade protection violates the WTO regulations, they must fight the lawsuit of rights protection to the end.


Shen Danyang, spokesman of the Ministry of Commerce, said that

AOKANG shoe industry

The positive role of winning the EU anti-dumping case is manifested in at least three aspects.

First, the decision of the European Court of Justice ruled that the European Union did not grant fair treatment to Chinese enterprises in the anti-dumping investigation. This is the EU's past recognition. This decision has played a role in the Ming and the Qing Dynasties. Two, the decision of AOKANG's anti-dumping case has restricted the abuse of anti-dumping measures and abuse of discretion by the EC. It has warned the European Commission not only to exercise its administrative power in strict accordance with the law in the application of other market rules but also to abuse it. Three, some enterprises in China did not dare to run to the EU and trade remedy countries to protect their rights by local laws.


Enterprises should learn to protect themselves.


In recent years, with the rise of Global trade protectionism, China's home appliances, tires, photovoltaic, bicycles and other industries have encountered anti-dumping investigations or other unreasonable and unfair treatment in the process of expanding overseas markets.


Because the economic situation in Europe and the United States is still not improving, in the next few years,

Trade protectionism

The phenomenon of rising will be more obvious.

Under the circumstances of anti-dumping investigations and sanctions against Chinese enterprises in Europe and the United States, Chinese enterprises must take the initiative to take advantage of the rules of the international trade and actively respond to Lari.

However, judging from the current situation, the lack of an in-depth understanding of the relevant rules of WTO, and the expense of expensive rights and protectionism, Chinese enterprises' overseas rights protection is still very difficult.


Pu Lingchen told reporters that once the international trade disputes entered the judicial process, it would take a long time before the final ruling was reached.

In the process, enterprises need enough courage and confidence and perseverance to cope with international trade disputes properly.


Pu Ling dust also said that enterprises in

Expand the international market

At the same time, we can also take some measures to protect ourselves and try our best to avoid trade disputes.

First of all, we must correctly understand the law and act in strict accordance with legal procedures.

In recent years, Chinese enterprises have adopted more commercially competitive means overseas. They only see the short-term effects and market accommodations in business, which easily lead to difficulties in importing enterprises.

Therefore, Chinese enterprises should change their concepts, familiarise themselves with local laws and international trade rules, take the legal framework as their "protective shell", and then introduce the commercial competitive strategy.


Secondly, in the process of exporting, Chinese enterprises should not regard price as the only way to expand overseas markets. We should pay attention to optimizing the product mix so as to make price, brand, quality, culture and other factors be integrated, so that products can be more fully and perfectly enter the overseas market.


Thirdly, in the process of "going out", China should actively open up emerging markets on the basis of continuing to stabilize the mature market, so as to avoid products being sold too much to a certain market.

In addition, enterprises should seriously interpret the trend of foreign market development and catch market information of overseas market development situation in time, and make timely response to avoid being bogged down in mire.

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